Affordability Calculator

Calc Affordability

Yearly Income

$.00

Monthly Debt

$Mo

Monthly debts (credit cards, loans, etc.)

Down Payment

$.00

Interest

Loan Term

Years

Mortgage Amount

Purchase Budget

Taxes, Fees and Financial

Download this Calculation

If you are human, leave this field blank.

Clicking the submit button will allow you to download a pdf of your calculations

Notes

Front-End Ratio: 28%. This means your monthly housing expenses, including your mortgage payment, property taxes, homeowner’s insurance, and PMI (if applicable), should not exceed this percentage.

Back-End Ratio: 36%. This means your total monthly debt payments, including housing expenses and other debts like car loans and credit card payments, should not exceed this percentage. This is the amount used on this form to calculate affordability.

Down Payment

Enter the down payment you plan to contribute toward the purchase of your home. If your down payment is less than 20%, you may be required to pay mortgage insurance.

Frequently Asked Questions

Here are some of the most frequently asked questions about home affordability and why it matters.

How is Your Mortgage Interest Rate Determined

The foundation of home affordability hinges on your mortgage interest rate. When evaluating your ability to afford a home, it’s crucial to consider the estimated interest rate associated with your mortgage.

Your debt-to-income ratio.
Your track record of timely bill payments.
Verification of a stable income source.
The extent of your down payment, along with additional reserves for closing expenses and other costs associated with relocating to a new residence.

Once lenders ascertain your qualification for a mortgage, they proceed to determine the interest rate applicable to your loan. Your credit score plays a significant role in shaping the mortgage rate you’ll receive.

Naturally, a lower interest rate translates to a reduced monthly payment, contributing to enhanced affordability.

What is home affordability?

This question seeks to understand the concept of home affordability and how it is determined.

What is a debt-to-income ratio and CALCULATE IT

This question aims to clarify the significance of the debt-to-income ratio in the home affordability equation.

Please select a valid form

What role does my credit score play in determining my home affordability?

Understanding how credit scores affect the mortgage interest rate and, consequently, home affordability is a common concern.

How do lenders assess my eligibility for a mortgage?

People often want to know the criteria and process that lenders use to evaluate whether they qualify for a mortgage.

Are there any government programs or incentives to help with home affordability?

This question is relevant for individuals seeking information on available programs or assistance for homebuyers.

What is the ideal percentage of my income to allocate to housing costs?

Homebuyers may inquire about recommended guidelines for the portion of their income that should go towards housing expenses.

How can I improve my home affordability?

This question focuses on strategies and tips for making homeownership more affordable, such as improving credit scores or saving for a larger down payment.

What is the relationship between interest rates and monthly mortgage payments?

This question delves into how changes in interest rates can impact the monthly cost of a mortgage and, consequently, home affordability.

Should I consider adjustable-rate mortgages (ARMs) for greater affordability?

Prospective homebuyers may want to know about the advantages and disadvantages of adjustable-rate mortgages compared to fixed-rate mortgages in terms of affordability.

What are the common pitfalls to avoid when assessing home affordability?

This question addresses potential mistakes or misconceptions that individuals should be aware of when determining their home affordability.

Is it better to rent or buy a home in terms of affordability?

Some people may be unsure whether renting or buying is the more cost-effective option, and this question explores the factors to consider.

How do property taxes and insurance affect home affordability?

Homebuyers may inquire about the impact of property taxes and homeowners insurance on their overall housing costs.

Can I refinance my mortgage to improve affordability?

This question examines the possibility of refinancing as a strategy to make homeownership more affordable, especially when interest rates change.

Disclaimer

In order to receive a helpful estimate, it’s important that you input accurate information.

Results in no way indicate approval or financing of a mortgage loan. Contact a mortgage lender to understand your personalized financing options.

Helpful Need To Knows about Mortgages

Florida Mortgage Rates

30 Year Fixed

15 Year Fixed

5/1 ARM

View Trend

Source: Mortgage Rates

4 Things to Know about Home Insurance: Decoding an Intimidating Topic

by Staff Writer | August 29, 2023 | Finance, Learn About Financing | 0 Comments

Protecting Your Home and Peace of Mind Home insurance, also known as homeowner's insurance or property insurance, is a type of insurance policy that provides coverage for your home and its contents. It offers financial protection in the event of various perils, such...

How to Boost Your Open House Appeal: Proven Techniques

by Staff Writer | May 16, 2024 | Selling | 0 Comments

Hey there, savvy homeowners! Want to make your home the star of the show during an open house? Want to learn how to set the stage just right so potential buyers are instantly smitten? Today, we're dishing out the secrets on how to boost your open house appeal. The...

Housing Market Trends for 2024

by Staff Writer | May 7, 2024 | Buying, Trends | 0 Comments

Introduction Hello, future homeowners and seasoned investors. Let's take a closer look at the current state of the U.S. housing market and the housing market trends for 2024. Along the way, we'll also recall the events of 2023 and their potential impact on the future...

The Art of Home Seller Etiquette: Don’t Miss These Tips!

by Staff Writer | July 10, 2024 | Selling | 0 Comments

Master the art of home seller etiquette with our expert guide. Learn the dos and dont’s so you can impress buyers.

Are You Home-Buying Ready or Not? Uncover Your Property Prowess with Our Fun Quiz!

by Staff Writer | January 7, 2024 | Buying | 0 Comments

Regardless of your quiz results, remember that buying a home is a personal decision based on many factors. This quiz is a starting point to help you think about what's involved. Happy house hunting!

Strategic and Affordable Home Improvements that Pay Off

by Staff Writer | May 6, 2024 | Home Improvement | 0 Comments

Have you ever looked around your home and thought, "This place could use a little sprucing up?" We're all interested in increasing the enjoyment and value of our properties. But where do you start? And how can you ensure your home improvements pay off in the long run?...

Selling Your House with a Mortgage: What to Know

by Staff Writer | April 12, 2024 | Learn About Financing, Selling | 0 Comments

Welcome to selling your house with a mortgage 101! In this article, we'll guide you through the entire process of selling a home with a mortgage. From understanding the different types of mortgages to the extra steps involved with the different types, we've got you...

What Makes a Smart Home Smart?

by Staff Writer | September 4, 2023 | Smart Home, Trends | 0 Comments

Have you ever wondered, 'What exactly makes a smart home smart?' Rest assured, you're not alone. To give you a better sense of what smart home technology means, picture this: you step through your front door after a long day, and your home instantly springs to life....

Thinking of Selling Your Home ‘As Is’? Here’s What Every Homeowner Needs to Know

by Staff Writer | January 13, 2024 | Finance, Selling | 0 Comments

Welcome to "As Is" Home Sales! Are you thinking about selling your home but feeling overwhelmed by the idea of renovations, repairs, and getting everything in tip-top shape? Well, you might want to consider the "as is" route. Selling a house "as is" means you’re...

Homeowner’s Guide to Air Conditioner Maintenance

by Staff Writer | October 15, 2024 | Home Improvement, Property | 0 Comments

As a homeowner, maintaining your air conditioner will maximize comfort and efficiency and avoid costly repairs. This guide will walk you through essential maintenance tasks, helping you decide what you can do yourself and when to call in the pros. Why Maintain Your...

Demystifying Mortgage Interest Rates

Naturally, a lower interest rate translates to a reduced monthly payment, contributing to enhanced affordability.

Keep in mind that mortgage terms and conditions can vary, so it’s crucial to work closely with a qualified mortgage professional to tailor your mortgage to your unique financial situation and homeownership goals

The frequently asked questions here, provide valuable information for individuals looking to understand and navigate the complexities of home affordability.